CHESTER — Mayor John Linder called for the city to be placed in receivership Monday, but did not find any backers among his all-Democratic administration.

Linder made his request at the deliberative council meeting to the chagrin of Councilwoman Portia West, who urged him to speak with council in private before publicly announcing his desire.

Linder said the city remains fiscally challenged by debt obligations, rising pension costs and costly arbitration agreements with the city fire and police departments. He commended the city’s efforts thus far, but said a receiver will ensure the city remains solvent.

“My urgency is because we’re approaching two years in my administration,” Linder said. “We only have two left to get this thing under control. ... I believe it is really imperative to our forward movement and progress, regardless of what we have inherited.”

Linder’s request came just three hours after West and Councilman William “Al” Jacobs accused the former Republican administration of leaving the city with varied “financial obstacles.” Speaking at a campaign event, they blasted the Republicans for permitting overtime abuse, failing to resolve the fire and police contracts and leaving the Dems with limited operating funds.

Linder, however, overshadowed their accusations in advocating for a receivership — a condition Chester may not be eligible to enter.

As a member of the Act 47 state assistance program for distressed cities, Chester is required to adopt a recovery plan designed to guide the city to financial stability. Act 47 prohibits cities with recovery plans in place from entering receivership.

City council unanimously adopted a revised five-year recovery plan earlier this year. The plan includes various initiatives designed to increase revenue or cut expenses. However, the initiatives of the plan are recommendations, not mandates.

“If we follow it to a tee, we will have a surplus each and every year over the life of that plan,” said Councilman Nafis Nichols, director of accounts and finances.

Nichols said he and his fellow council members opposed Linder’s request. Though the city has its fiscal challenges, Nichols said it is not incapable of paying its vendors, payroll or debt obligations. He noted the city maintained its A credit rating issued by Standard and Poor’s.

“If we needed a receiver, why would we have an A credit rating?” Nichols said. “Harrisburg has a receiver only because they’re on the brink of bankruptcy. Chester is not on the brink of bankruptcy.”

Dan Connelly, director of Fairmount Capital Inc., declined to comment on Linder’s request for a receivership until he personally spoke with the mayor. Fairmount Capital oversees Chester’s Act 47 participation.

Linder said he wants a receiver to ensure all aspects of the plan are implemented. When asked whether he has confidence in council to remain fiscally responsible, Linder said council members have differing views on fiscal responsibility.

“The bottom line is how are we going to guarantee to the taxpayers that we’re going to do our best if we don’t have some kind of guarantee,” Linder said. “We are not all on the same page of the financial management situation. I think that I’m offering a way that we all can guarantee (responsibility) and we don’t have to worry about it.”

Before Linder announced his intention, West pleaded he discuss the matter with council privately. A frequent advocate for governmental transparency, West said Linder had not broached the subject with council at all beforehand.

“I don’t mind bringing things to light, but we had not even talked about it,” West said.

Earlier Monday, West and Jacobs held a campaign event blaming the former Republican administration for varied financial “obstacles.” The incumbent Democrats are running against independent Bige Chambers and Republicans Shakirah Randolph and Shepard A. Garner, a former councilman who oversaw the finance department during the last administration.

West criticized the Republican administration for allowing salaried employees to abuse overtime. She noted eight employees combined to make nearly $170,000 in overtime in 2011. Four of them earned between $24,000 and $50,500 in overtime on top of salaries totaling at least $40,000.

However, West authorized the overtime payments for two of those employees, including one who earned $24,357 in overtime. Linder, a councilman at the time, authorized another who earned $3,522 in overtime.

Asked about her seemingly hypocritical remarks, West blamed Garner for setting the parameters that permitted overtime abuse.

“The protocol and process by which people were paid — those parameters were set by the director of accounts and finance,” West said.

Garner said the Republican administration never classified its salaried employees as nonexempt from overtime.

“We have to follow federal guidelines,” Garner said. “If someone works and they’re nonexempt, we have to pay them. It’s not like we had ghost officials.”

West also claimed the Republicans left the Dems with limited operating funds and $1.029 million in unpaid vendor bills.

Garner pointed to a recently released 2011 audit that showed Chester had $9.6 million in its coffers Dec. 31, 2011. About half of that money was deemed nonspendable or restricted. He said any unpaid bills would be reflected in the audit.

Garner also noted audits show West overspent her departmental budget in both 2010 and 2011. He also questioned why the Dems raised their auto allowances if they were so concerned with finances.

West said her deficits were caused by heavy snowstorms and that the auto allowances were necessary due for wear and tear.

Thomas Moore, former chief of staff to Mayor Wendell N. Butler Jr., refuted accusations regarding the fire contract, saying the Democrats asked the Republicans to appeal the fire contract on their behalf during the transition period between administrations.

Jacobs claimed the 2011 audit took 21 months to complete partly because of missing documents, errors and poor accounting practices committed by the Republicans.

Chambers said the bickering between political parties must stop if the city is to move forward.

“That’s what hurts our city,” he said. “All the bickering between the two different political factions — that’s what’s crippling us.”

About the Author

John Kopp is a reporter for the Delaware County Daily Times, who covers state and county politics. Follow him on Twitter @DT_JohnKopp Reach the author at jkopp@delcotimes.com
or follow John on Twitter: @DT_JohnKopp.